Economics: Part 2 - The 4 Factors of Production

Economists divided the factors of production into four categories. 
What are these 4 Categories in the Factors of Production?

Land, Labor, Capital, and Entrepreneurship

4 Factors of Production

When [1]_______ decide to use resources from the economy, they usually end up [2]_______ the [3]_______ and [4]_______ that we [5]_______ at the household level.

1) Producers
2) Producing
3) Goods
4) Services
5) Consume

What refers to the resources people use to produce goods and services; they are the building blocks of the economy.

4 Factors of Production

What refers to the resources or things that we use to produce goods?

The Factors of Production

What other term can be used to refer to The Factors of Production?

Production Inputs

Anything produced in the economy must come from a [1]_______ of those resources or things that we use to [2]_______.

1) Combination
2) Produce Goods

Which of the 4 categories in the factors of production consists of the physical space on which production takes place, as well as the natural resources found under it or on it?

Land

Land is paid for using the _______.

Rent

Land is the resource that _________ used in production.

Encompasses the natural resources

Land is considered to be the “________”

Original and inexhaustible gift of nature

In modern economics, Land is broadly defined to _________, including minerals, forest products, water, and land resources.

Include all that nature provides

Which of the 4 categories in the factors of production refers to the physical and mental effort by a person?

Labor

Which of the 4 categories in the factors of production is the period where human beings spend or  refers to the number of persons needed to produce goods and services?

Labor

Labor is paid for using a [1]____ or [2]____.

1) Salary 

2) Wage

What are the two types of Labor?

1) Physical
2) Mental

What type of Labor utilizes one’s strength and usually earns less?

Physical

What type of Labor utilizes intelligence and earns more?

Mental

What do you call the kinds of jobs that are under Physical Labor?

Blue-collar Jobs

What do you call the kinds of jobs that are under Mental Labor?

White-collar Jobs

The Salary of an individual is dependent on what?

How long one studied in school.

Which of the 4 categories in the factors of production refers to the physical or financial resources that are used to produce value in an economy?

Capital

Capital resources form the durable goods of an economy. In other words they are?

Produced to produce other goods

Capital is the _______ means of production.

Man-made

Capital is paid for using _______.

Interest

What do you call the tools and materials used to get jobs done?

Capital Products

Which of the 4 categories in the factors of production refers to the special persons that determine the right amounts of land, labor, and capital to efficiently produce the goods and services that they wish to provide in the economy?

Entrepreneurship

Entrepreneurs are people who _______ the entire production process.

Initiate

Who is the person referred to as the “risk taker, organizer, and binder of other factors?”

Entrepreneur

In essence, Entrepreneurs are primarily responsible for the _______of_____and_______ in the economy.

Delivery of Goods and Services

Entrepreneurship earns _______.

Profit

Without the [1]_______ skills and talents of the entrepreneur, we will never get those [2]_______ and [3]_______ that we enjoy in the market.

1) Management
2) Products
3) Services

The [1]_______ makes the most important business decisions to keep the firm in good shape, such as [2]_______ and [3]_______.

1) Entrepreneur
2) Pricing
3) Marketing

An [1]_______ may also decide to invest in [2]_______ and [3]_______ in their firms to introduce new products and services, improve their current product line, or production processes.

1) Entrepreneur
2) Research
3) Development

Entrepreneurs are considered to be the _______ in the economy.

Innovators